Lomapaseo - I would be interested in seeing the FAA report you mention please provide a link.
You should check out
http://www.faa.gov/aircraft/air_cert...AM2_Report.pdf
This is the FAA's "second technical report on propulsion systems and APU related safety hazards - 2005".
Regarding loss of oil pressure not being potentially catastrophic -
(1) - In the section
"Multiple engine power loss - non fuel - high bypass engines" it quotes three major incidents.
i) Four engine oil loss due to maintenance failure to reinstall O rings.
ii) Dual engine oil pressure loss due to boroscope crank pad cover left off
iii)Low oil pressure on both engines (completely out of oil).
In all these cases oil was being progessively lost whilst taxying out and during the climb. This problem could have been picked up before take off, during initial climb well before it became life threatening.
(2) - On page 41 a mention of "under cowl fires occur from flammable fluid leakage onto hot surfaces in the nacelle"
Whilst most of the reports 1,876 "oil and hydraulic fluid leaks - Turbofan engines" were not as serious as this many of them did result in In Flight Shut Downs,(from loss of engine oil). Many of these incidents would have resulted in significant damage to a multi million dollar engine had the pilots waited until the severe symptoms you describe had presented themselves.
With regard to monitioring secondary engine instruments being "paranoid" look up the dictionary definition....I think you'll find that a tad OTT. I prefer to call it airmanship.
It costs the Boeing a fortune to put every instrument, lever switch etc into our cockpit. They have been put there for a reason...for pilots to use.